Presentation by Sheila Campbell and Evan Herrnstadt, analysts in CBO’s Microeconomic Studies Division, and David Torregrosa, an analyst in CBO’s Financial Analysis Division, at the Mortgage Bankers Association Webinar.
Summary
Climate change heightens the risks of wildfires and other natural disasters. As insurance payouts for losses sustained in those disasters increase and as uncertainty about future losses grows, people in many high-risk areas have faced difficulty obtaining or affording insurance coverage for their property. In a report published in August 2024, CBO analyzed recent changes in property insurance markets and considered alternative insurance products as well as policy approaches to increase the availability and affordability of insurance for homeowners and renters. This presentation focuses on key questions addressed in that report.